In the recently concluded year of 2024, the Hong Kong stock market experienced a reversal and upward trend. With the gradual recovery of market confidence, listed companies showcased their confidence in their future development by repurchasing stocks, with an increasing pace and intensity of buybacks to further enhance investors' confidence in the company's prospects.

According to Wind data, as of December 30, 2024, a total of 280 Hong Kong listed companies implemented buybacks throughout the year, a year-on-year increase of 35%; the total buyback amount reached 263.441 billion HKD, a substantial year-on-year increase of 108%, setting a new historical high, more than double the buyback amount of 126.9 billion HKD in 2023. In December alone, 111 Hong Kong listed companies initiated buybacks, with a cumulative repurchase quantity of approximately 0.674 billion shares and a buyback amount of 20.446 billion HKD.

Meanwhile, many small and medium market capitalization companies have also joined the buyback ranks, signaling that their valuations are undervalued.

Taking Kunbo Medical as an example, the company announced in December 2024 its intention to repurchase up to 10% of its shares and explicitly stated that its current financial condition is stable, and the current Fill Price does not reflect its intrinsic value. The smooth implementation of the share buyback further demonstrates the management's confidence in the company's future performance, achieving sustainable development.

Of course, for investors, determining Kunbo Medical's investment value ultimately needs to return to the company’s competitiveness and industry development trends.

Kunbo Medical operates in the relatively niche medical instruments sector of respiratory intervention, which is still on the eve of an explosion, and it can be said that few investors can understand its underlying logic. After sorting out its technological pathways and product pipeline, it is believed that whether in terms of pipeline composition, product advantages, or Global Strategy, Kunbo Medical has already shown sustainable long-term growth potential. The company's buyback actions have led investors to follow suit, with both trading volume and price rising, showing that investors are full of confidence in the company's fundamentals.

From the perspective of Global Strategy, Kunbo Medical focuses on the treatment of COPD and lung cancer, having built a rich product portfolio in the diagnostic consumables area, with several globally or in China unique innovative pulmonary intervention treatment products. It is believed that the richness of consumable products will transform the company's revenue sources. Compared to the navigation equipment sales the company had relied on for many years, the sales cycles of high-frequency consumable products are short, with higher profit margins, which will greatly boost the revenue growth rate in the long run. At the same time, the company continues to increase research and development of lung cancer and COPD related products and advance the registration process, strengthening the domestic self-developed product pipeline and constructing a comprehensive solution for pulmonary disease intervention treatment, with clinical research progress ranking at the forefront of the industry, and its innovations will give the entire product line deeper competitiveness and driving force. It should also be noted that the company has a high moat in patent coverage, meaning that the company can suppress competition for a sufficiently long time and continuously act as a leader in the industry.

Specifically regarding products, in addition to the promotion of the InterVapor thermal vapor device for treating COPD, it has also been noted that the company's RF2 product for minimally invasive treatment of lung cancer was already used in conjunction with lung surgery robots last year, and the pre-marketing clinical data for this product also demonstrated excellent clinical results, with an NMPA registration application already submitted. The clinical breakout for minimally invasive cancer intervention, along with manual operation by doctors combined with robot availability and exclusive treatment products combined with external SSE Select Resources Industries Index, is believed to have significant market space potential after obtaining the NMPA registration certificate. At the same time, multiple products of the company have obtained important CE and FDA certifications overseas, with broad coverage in Southeast Asia, India, the Middle East, and other countries, seizing the opportunity for Chinese products to go global, and the second growth curve is also clearer. From a more macro perspective, under a series of related policy guidance and support in recent years, China's medical instruments industry has gradually achieved product localization and high-end development, a trend that has not only promoted technological advancement in the industry but also provided domestic enterprises with the strength to compete with international giants. According to the "Medical Instruments Blue Book: China Medical Instruments Industry Development Report (2024)", the number of approved innovative medical instruments products in China continued to grow in 2023, demonstrating the innovation vitality of the industry and future development potential.

At the same time, in terms of Capital Markets, the current Global economic landscape is changing. The Federal Reserve has recently entered a rate-cutting cycle, and domestic policies are also intensifying efforts to support economic growth, which makes high-quality Assets in China increasingly favored by the market. The medical instruments Industry, as a field with great growth potential, is expected to welcome new development opportunities in this wave of market recovery after experiencing a prolonged period of sluggishness, and its development potential and market performance are worth anticipating.

Therefore, in this context, it is believed that companies like Kubo Medical, which already have obvious advantages in the medical instruments Industry, are likely to be the first to enjoy the dividends of Industry development and market recovery, leading to value restoration.